Naira at I & E FX market drops by 0.08% to N411.45/$
By Kayode Tokede
Naira at the Investors & Exporters Foreign Exchange (I & E FX) window on Tuesday dropped by 0.08 percent to close at N411.45 against the Dollar.
Also, at the I & E FX window, the Naira gained by 0.61percent and 0.63 per cent against the Euro and Pound sterling + closing at N484.48 and N565.09 respectively.
Naira appreciated against the Dollar at the I&E window at Monday’s trading session to close at N411.13 against the Dollar as against the N411.25 against the Dollar at the end of trade on Friday, 2nd July 2021. This represents a 12 kobo gain.
The opening indicative rate closed at N411.50 to a dollar on Monday, 5th July 2021, this represents a 48 kobo gain when compared to the N411.98 to a dollar that was recorded the previous trading day.
An exchange rate of N420.86 to a dollar was the highest rate recorded during intra-day trading before it settled at N411.13/$1, while it sold for as low as N400/$1 during intra-day trading.
Meanwhile, foreign exchange turnover at the Investors and Exporters (I&E) closed at $71.55 million on Tuesday.
The foreign exchange turnover dropped by 48.6 percent from $139.23 million recorded on Friday to $71.55 million on Monday.
At the parallel market, the Naira was flat closing at N595, N710 and N503 against the Euro, Pound Sterling and Dollar respectively.
Meanwhile, the naira was stable at the parallel market, as it closed at N503 to a dollar. This was the same rate that was recorded in the previous trading session.
According to analysts at Investment One research, “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.”
Money market rates declined today as Open Buy Back and Overnight rates both fell by 50basis points each to close at 9.75percent and 10.25percent respectively.
The bond market traded on a negative note on Tuesday as yields inched up across most maturities.
The yields on the 5-year, 7-year and 10-year benchmark bonds close up by seven basis points, 9bps and six basis points at 11.88per cent, 12.30percent and 12.34per cent respectively.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts at Investment One research.
According to the Central Bank of Nigeria (CBN), the country’s external reserve declined by $46 million on Friday to stand at $33.233 billion. This represents a 0.14percent decrease compared to the $33.28 billion recorded on Thursday.
Nigeria’s foreign reserve fell to its lowest position since October 2017, as its year-to-date decline surpasses $2 billion, while its monthly decline for June 2021 stood at $905.5 million. This is despite the recent bullish trend recorded in the global oil market.
